2021 Wrapped for Advertisers: How sound helped us rebuild and reconnect

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2021 Wrapped for Advertisers: How sound helped us rebuild and reconnect
2021 Wrapped for
Advertisers:
How sound helped us
rebuild and reconnect
2021 Wrapped for Advertisers: How sound helped us rebuild and reconnect
2021 Wrapped for Advertisers: How sound helped us rebuild and reconnect                  01

        After more than a year on pause, audiences hit play again on rebuilding their
        lives — and sound was with them every step of the way.

        In 2021, audio soundtracked a whole array of new realities: new commutes,
        new workouts, new recipes, new friends, new forms of family bonding, and
        more.

        Digital audio elevated moments, informed opinions, provided education, and
        inspired moods. And, it helped forge new connections between listeners, cre-
        ators, and advertisers.

        With all of this momentum, the future is bright: 61% of Gen Zs and millennials
        globally said they feel empowered to build a “better normal.”¹ So before you
        start thinking about next year, take a look at what changed in 2021. It might
        just help you connect with your audience in more meaningful ways in 2022.
        ¹Spotify Culture Next Global Survey, among 9,000 respondents 15-40, Apr’21
2021 Wrapped for Advertisers: How sound helped us rebuild and reconnect
02

TREND ONE

Always On: Audio was our constant companion

TREND TWO

Amplified Connections: Sound helped us unite through culture

TREND THREE

Household Harmony: Shared listening in the home kept us together

TREND FOUR

Eclectic Sounds: Podcasts opened listeners up to a diverse range
of experiences

TREND FIVE

Right Time, Right Vibes: Sound helped us magnify the moment
2021 Wrapped for Advertisers: How sound helped us rebuild and reconnect
03
           TREND ONE

           Always On
           Audio was our constant companion.

           Looking to rebuild and rebalance, audiences sought ways to rise above the
           digital clutter. The best place to do that was through sound, with 79% of
           global audiences agreeing that they have turned to digital audio as a tool to
           combat screen fatigue.²

           Spotify proved to be a haven for consumers as they leaned into (and on)
           sound, with overall minutes played on the platform increasing by +22% from
           2020 to 2021.³

           These sounds acted as our constant companion across a range of daily
           moments, such as Focus & Study, Work, and Getting Ready ⁴ — and 69% of
           Gen Z and millennial Spotify users agreed that audio acts as a soundtrack to
           their daily lives.⁵

           YOY Growth (‘20 - ‘21)
           of Minutes Played By
           Spotify Users 15-44 in
           the US:6

                                                                              +23%
                                                                              Spotify users 15-44

²Spotify x IPG, Digital Audio Expansiveness,’21
³Spotify First Party Global Data, Jan-Oct’21 vs. Jan-Oct’20
⁴Spotify First Party Global Data, Jan-Oct’21 vs. Jan-Oct’20
⁵Spotify Culture Next Global survey, among 9,000 respondents, 15-40, Apr’21
6Spotify First Party Data, US, Jan-Oct’21 vs. Jan-Oct’20
2021 Wrapped for Advertisers: How sound helped us rebuild and reconnect
04

Always On

            YOY Growth (‘20 - ‘21) of Key Moments For
            Spotify Users in the US:7

            Getting Ready                                   Focus & Study      Work
      (+25% YoY)                                           (+37% YoY)       (+37% YoY)

            What it means
            for brands
            Because listeners are spending more time than ever on Spotify, audio
            discovery is at an all-time high. Listeners are eager to experience new
            sounds, voices, and brands — and they’re sharing these discoveries with
            their friends and social networks. Reach audiences who are already in the
            discovery mindset by sponsoring personalized playlists such as Release
            Radar or Discover Weekly, which celebrate finding fresh music.

7Spotify First Party Data, US, Jan-Oct’21 vs. Jan-Oct’20
05
           TREND TWO

           Amplified Connections
           Sound helped us unite through culture.

           In the face of challenging circumstances to stay connected to loved ones,
           listeners increasingly used sound to bridge the gap by sharing moments and
           culture, maintaining their digital connections over the distance. For example,
           59% of Gen Z and millennial Spotify users globally said they’ve shared more
           content with friends during the pandemic as a way of staying in touch.8
           More than 2.1 billion tracks, shows, albums, and artists were shared from
           Spotify in 2021, and more than 22 million collaborative Spotify playlists were
           created in the last year.9

           People also used sound to collectively tap into the zeitgeist – attending
           virtual shows and listening parties by the millions, and gravitating to viral
           moments and artists – with Spotify’s own Viral Hits playlist seeing a +111%
           increase in minutes played from 2020 to 2021.¹0

           What it means
           for brands
           Sound is a critical way in which consumers unite with each
           other. Now more than ever before, listeners stay in touch
           with friends and family by sharing the content they love – all
           on the Spotify platform. Consider reaching these consumers
           as they connect and share through our audience and
           demographic targeting in Spotify Ad Studio.

8Spotify Culture Next Global Survey, among 9,000 respondents, 15-40, Apr’21
9Spotify First Party Global Data, Jan-Oct’21
¹0Spotify First Party Global Data, Jan-Oct’21 vs. Jan-Oct’20
06
TREND THREE

Household Harmony
Shared listening in the home kept us together.

As the pace of our households slowed, audio also brought us together through
communal listening. Smart speakers served as the centerpiece, serving up
everything from dance party mixes to songs from “Cocomelon.” It’s no surprise
these devices rose in popularity among Spotify users globally in 2021, with total
listening time through smart speakers growing by +29% YoY.¹1

We saw this growing trend specifically among parents, with 63% saying they’ve
been listening to music and podcasts through smart speakers so their household
can listen together.¹2 It’s no surprise speakers have overtaken tablets as the third
most-used device, behind mobile and desktop, for listening among 35+
Spotify users.¹3

As restrictions lifted, friends and social pods listened together via new (and
previously niche) devices, leading to increases in car (+124%), TV (+43%), and
game console (+4%) listening in 2021 compared to the previous year.¹4

                                                      ¹1Spotify First Party Global Data, Jan-Oct’21 vs. Jan-Oct’20
                                                      ¹2Spotify Culture Next Global Survey, among 9,000 respondents, 15-40, Apr’21
                                                      ¹3Spotify First Party Global Data, Jan-Oct’21
                                                      ¹4Spotify First Party Global Data, Jan-Oct’21 vs. Jan-Oct’20
Household Harmony                                                                                       07

                                                  YOY Growth (‘20 - ‘21) of Devices By Minutes
                                                  Played By Spotify Users in the US:¹5

+214%                                             +41%             +38%         +18%             +10%
        Car                                       Wearable          TV        Smart Speaker       Web

            What it means
            for brands
            Create engaging audio that allows families to learn, laugh, and enjoy
            spending time together. Take it to the next level and get the whole family
            involved with Audio Everywhere ads, which can be targeted across
            connected-home devices.

¹5Spotify First Party Global Data, US, Jan-Oct’21 vs. Jan-Oct’20
08
TREND FOUR

Eclectic Sounds
Podcasts opened listeners up to a diverse range of experiences.

While audiences’ worlds remained in flux, sound allowed them to explore
a diverse range of experiences: 68% of Gen Z and millennial Spotify users
globally said that they discovered more content that they like than ever
before, thanks to audio streaming services.¹6

Podcasts largely served up varied content for listeners to explore, treating a
growing audience to a world of stories, news, and wholesome content. From
2020 to 2021, the number of distinct podcast users aged 15-44 on Spotify
grew +34% YoY — largely in part to an influx of audience segments like Moms,
                                      Dads, and New Parents — while the
                                      total time spent listening to podcasts
                                      grew by +83% YoY.¹7

                                     Those listeners tuned into an expanding
                                     roster of creators and content, resulting
                                     in an eclectic Top 50 Podcasts on
                                     Spotify, including shows like Spotify
                                     Exclusive Gemischtes Hack, a German-
                                     language comedy podcast to true crime
                                     favorites like Crime Junkie.¹8
                                      ¹6Spotify Culture Next Global Survey, among 9,000 respondents 15-40, Apr’21
                                      ¹7Spotify First Party Global Data, Jan-Oct’21 vs. Jan-Oct’20
                                      ¹8Spotify First Party Global Data, Jan-Oct’21 vs. Jan-Oct’20
Eclectic Sounds                                                                                                                     09

                           YOY Growth (‘20 - ‘21) of Distinct Spotify Users
                           By Segment For the US: 19
                           19Spotify First Party Data, US, Jan-Oct’21 vs. Jan-Oct’20

+103%           +81%            +86%                       +65%                        +86%     +85%       +83%          +79%      +81%
 Dads               Moms           New                   Tastemakers                   Gamers   Health &     Fitness     Foodies   Tech Early
                                  Parents                                                       Wellness   Enthusiasts             Adopters

          What it means
          for brands
          Spotify listeners embraced discovery, seeking out new experiences through
          their speakers. Spotify Podcasts, in particular, captured a range of moods,
          topics, and listeners, allowing audiences to explore worlds beyond their own.

          To reach this highly engaged, ever-curious audience through the intimacy
          of podcast ads, leverage the Spotify Audience Network to engage podcast
          listeners both on and off Spotify.
10
            TREND FIVE

            Right Time,
            Right Vibes
            Sound helped us magnify the moment.

            There’s no denying it: 2021 was a roller-coaster year, and sound was a
            powerful tool for creating the right vibe for the moment.

            Top Playlists on Spotify covered a wide range of moods, with relaxing (Deep
            Sleep, Peaceful Piano), energetic (Mood Booster, Top Hits), nostalgic (All
            Out 80s), and vibey (lofi beats, Soft Pop Hits) playlists all rounding out
            the Top 20 most-streamed playlists on Spotify in 2021.²0 Spotify users
            continued to search for and lean into the right musical match for the right
            moment, whether gritty or urgent, energetic or intimate.

            And when listeners didn’t want
            to choose their particular mood,
            they continued to lean heavily
            on personalized playlists like
            Discover Weekly and Release
            Radar to find the right vibe, with
            personalized playlists growing in
            average minutes played per year
            by +34% globally from Oct ‘20
            to Oct ‘21.²1

²0Spotify First Party Global Data, Jan-Oct’21
²1Spotify First Party Global Data, Oct’21 vs. Oct’20
Right Time, Right Vibes                                                                                              11

                                   Top YOY Growth (‘20 - ‘21) of Moods For
                                   Spotify Users in the US:²2
                                   ²2Spotify First Party Data, US, Jan-Oct’21 vs. Jan-Oct’20

+65%                      +48%                            +41%                                 +36%        +27%
Determined                Gritty                           Carefree                            Energetic   Festive

        What it means
        for brands
        Listeners are more receptive when messaging matches their moment.
        Leverage Audio Everywhere with playlist targeting, matching their vibe and
        aligning your creative messaging to the moment.
12

Opportunities
for Advertisers
   Our listeners and content are more diverse than ever. Streaming Ad
   Insertion (SAI) provides advertisers a unique way to merge the intimacy
   of podcast ads with the precision and placement needed to reach
   these audiences. It’s a new technology that unlocks digital planning,
   reporting, and measurement for our partners. To learn more, read our
   SAI whitepaper.

   Spotify’s self-serve advertising platform, Ad Studio, makes it easy
   for brands of all sizes to share their message with millions of listeners
   around the world. Our free creative services make it easy to produce
   professional audio ads in minutes. With our real-time reporting on
   ad delivery, performance, and audience, success is measurable. Get
   started instantly with Ad Studio.

   Announced at Stream On this year, the Spotify Audience Network is an
   audio-first advertising marketplace that offers scaled audience-based
   buying across our network of podcasts. With the Spotify Audience
   Network, advertisers have access to easy-to-use audience-based
   targeting tools, including demographic targeting (age, gender, and geo),
   behavioral targeting, contextual targeting, and custom targeting. To
   learn more, watch this year’s Stream On announcement.

   Contact your friends at Spotify
   Advertising today to learn more
   about leveraging these insights
   and tools for your brand.
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